Difference betn credit memo n credit memo for returns

What is difference betn credit memo n credit memo for returns?

Suppose, you have chrged (Price) the customer more or you have charged the customer for say 10 pieces but you have send actually 8 pieces,for which customer has paid you.
In both the above scenarios, you need to pay back the excess amount paid by him.
To payback, we create a Billing document called Credit memo. In standard SAP, Billing Type G2 is created for Credit memo.
This Credit memo(G2) is created with reference to a Credit memo request (Sales document type) with Order type "CR".
This Credit memo Request (CR) is created either with reference to Sales order or Billing document.
Ofcourse, it can also be created with out any reference document also. In real time scenario, we normally create this Credit memo Request with reference to the Billing document (Invoice).
No Delivery takes place in this scenario while creating a Credit memo (G2).
When goods are physically returned back by the customer due to some complaint, then we first, create a Return order(Order Type RE) with reference to either Sales order or Billing document. Normally, in real time scenarios, we refer the Billing document.
Return order can also be created with out any reference .
In situation like, suppose you had sent 10 pieces of certain material to the customer for which he has paid. But he found that 2 pieces are defective or damaged in transit. So he has returned it to you for which you need to create a Return order(RE).
From this Return order(RE) -
> Return Delivery is created -
> PGR.
As customer has returned the goods to you, then there are 2 options with you. Either you may send fresh stock ,which we normally call "Replacement" OR you may pay back the value for the returned goods.
If, we pay back, then we create a Credit memo for return, which called "Credit for Return" and in standard SAP represented by Billing Type (RE).
In standard system, this "Credit for Return(RE)" is ALWAYS created with reference to the "Return Order(RE)".
Even though, physical delivery takes place in return process, still the "Credit for return(RE)" is created with reference to the "Return order(RE)".
If, client requires it to be created from Return delivery then you need to establish necessary settings in customisation which has already beed discussed in this forum several times.
Hope, it is clear.

Similar Messages

  • Credit memo for returns with multiple reference deliveries

    Hi Experts,
    I have few credit memos for returns with multilple return orders and return deliveries in document flow.
    I want to find out where do we configure this setting in which there will be single credit memo for multiple deliveries.
    And how system decides the common factors in deliveries for this credit memo?
    Please guide.
    -Chetan Barokar.

    In copy control settings of delivery document to billing document you can maintained the requirement routine Data VBRK/VBRP as 03 - Single invoice for an item category, as theinvoice spliting will be control from copy control.
    with regards

  • Credit Memo for Returns PO

    I've created a PO with two items.  One normal item and one return item and posted the GR and IR.   The invoices was paid also.
    Due to some reasons I want to reverse the originally posted invoice.  Since it's paid and cleared, system would not allowing me to cancel the invoice using MR8M.
    The next option I've is to post a credit memo.   Here system is not allowing me to post the credit memo in any manner.  I've tried in below methods
    a) Credit Memo for both normal and return item.   - Here  system is adding the value of returns item twice and crediting the vendor instead of debiting.
    b) Individual Credit memo for normal item    and   Invoice for return item. -  Here normal item is ok, but while posting Invoice for returns item, system throwing error saying amount is negative.
    What ever the way system is not allowing me to post the document.  
    Can anybody help me in this matter. 
    Thanks in advance,

    Usually there is a functional different between the normal PO and return PO. When you combine together
    the following questions are popped up im my head.
    Q1. How to distinguish your doc type while creating PO?
    Q2. When you perform GR, did you do it for both normal and return items?
    Q3. When you perform GI (for returns), How did you perform?
    Q4. How the invoice identify whether it is meant for normal PO or return PO (Ofcourse - return PO, we ususally do credit memo)
    If you get the answer for above questions, you will get answer for your questions.

  • Freight on credit memo for returns PO

    We are trying to achieve the below solution for a returns PO, created 2 condition types, assigned to the pricing procedure to achieve the GR posting. When we use MRRL to create a credit memo for both the material and the freight. the system creates a credit memo for the material and an invoice for the freight. Can someone tell me, what drives the credit memo generation for both freight and material
    Cr INV
    Dr GRIR
    Dr Freight clrg
    Cr Freight
    Credit Memo/ERS settlement/ MRRL
    Dr Vendor
    Cr GRIR
    Cr Freight Clrg
    We were able to create the GR side of the entry, using two other condition types on the PO.
    Now when we do ERS settlement,
    the system creates a credit memo for the INV line item and an invoice for the freight line item.
    Both the freight and the material is charged to the PO vendor, we dont charge separate to the freight vendor at this point.
    Any help will be appreciated.

    Thx for the reply!!
    We did that before as well, Even as we select it, it creates 2 documents
    1. credit memo for the inventory to the vendor
    2. invoice for the freight to the same vendor
    I guess i am missing some config piece that makes the freight on the PO to be also a credit memo while doing the MRRL
    i am using 2 condition types FRA1 and a ZFR1 (mimicking FRA1 with a negative sign)
    i have assigned 2 diff (ActKey/Accrual Key) combination to each one of them
    FRE/FR1 and FRE/ZR1(Mimicking FR1) respectively.
    I am not sure which config drives the freight as a credit memo on the MRRL side.

  • Credit memo for returns

    Hi experts,
    If I want to create credit memo only after return delivery has been PGR, is it proper to make credit memo create with reference to return delivery? You know, SAP standard is to create this kind of credit memo with reference to return order.
    If not proper, is it the reason that credit memo is set in SAP to create with reference to order or billing?
    Pls advise. Many thanks.
    Edited by: Cathy on Oct 17, 2009 5:13 AM
    Edited by: Cathy on Oct 17, 2009 5:14 AM
    Edited by: Cathy on Oct 17, 2009 5:15 AM

    In standard SAP credit memo billing RE is created with reference to credit memo order type RE not with reference to return delivery  and PGR
    The basic reason is  return order item category REN is billing relence is Order releted billing hence it doesnot refer to return delivery
    In VOV7 if you make the billing relevance as A that is delivery related billing  for REN then system  will allow you to create credit memo with reference to return delivery only
    This is the first customization reqd
    Secondly there should be copy controls in VTFL between delivery type LR to billing type RE at header level and at item level for item category REN defined properly
    This may not be there in standard settings and this we should define
    Normally VTFA is referred for order releted billing and we are making that as delivery related so we should define copy controls in VTFL
    is it proper to make credit memo create with reference to return delivery?
    This is purely a client call
    In one my assignments the major requirement was to create returns credit memo with reference to delivery (returned delivery qty ) only
    His business prctise was
    his customers will telephonically give the return order for 5 units and send back only 4 units to him
    In this case if he makes a return return order for 5 and make a returm credit memo for 5 then that is not proper
    So we made this customization to him for creating  return credit memo with with reference to  return delivery
    His customers will telephonically give the return order for 5 units and send back only 4 units to him That was his operational shortcomings but we had to set the system accordingly
    We used to close the balance 1 unit with reason of rejection
    So according to me it is more proper to create return credit memo with reference to return delivery

  • How to process Debit Memos for returns when Pay on Receipt is enabled

    I have one supplier who is configured for AutoInvoice process with Pay On Receipt
    There is excess qty received from the supplier and needs to be returned. System did generate invoice for Qty received and put the invoice on excess Qty hold
    I have also checked the Create Debit Memo check box in Pay On Receipt region of supplier site and have processed the return of excess qty in Return window
    Now how to proceed to create the Debit Memo for the supplier?

    I did run the P O receipt Autoinvoice process again, but system created batches with receipt names but without any invoice there in (debit or credit memo) automatically created for accounting of return to suppliers.
    Can someone please help?

  • Credit note for Returns

    I did a credit note for a "returns order".
    Does someone know why I get the message:
    Document xxx saved (no accounting document generated)
    After that I have to press the "green flag" in change billing document or the ReleaseToAccounting within the menu.
    Is there a reason for this? Could this credit notes be released to accounting automatically as invoices do?
    Thx a lot !!!

    Hello chandu,
    thx. for your response.
    Your answer is correct, when having a determination problem.
    In my case I do nothing else, than save the credit note, then have to do a "ReleaseToAccounting" manually.
    Is this a intentional 2-step procedure within SAP?


    Hi all,
    I have an issue like, i have create GR aginst PO, suppose 10 pc, then did MIRO for that 10 pcs.
    Now i have return 2 pcs with MIGO (Return Delivery-122 mvt) against GR no and same challan no.
    so now i want to create a credit memo(MIRO) for same 2 qty.
    I want when i give the delivery note no in MIRO screen, that time only retun item(2qty) should come in the screen instead of 10pc.
    Please suggest me as soon as possible.

    As per the standard SAP, it will show full quantity.
    But if you want to show only the debit memo quantity,then it may be possible with the help of user exit, check with ABAPers

  • Debit Memo/ Credit Memo for incorrectly shipped items

    I Understood this: Lets assume you have sold 100 PCs Of Material A ( DLX model), But Due to some human error you have shiped Materia A (VLX) model, which is having price greater than previous one.In that case you will raise Debit memo for that customer.
    But what if the customer says that he doesn’t want to pay the difference?
    1. does he have to return the product back for exchange of the originally inquired product?
    2. is it the clients fault that we shipped the wrong product? and will take a hit for the loss?
    q: what if the customer decides to exchange the product ? there will be an inward and outward deliveries created for the 2 products at the clients plant; and will this trigger creation of one credit memo (for returns, since exchange is technically a return) and one debit memo (corrected invoice)?? Or will it be a straight exchange?
    Guru's please help me understand this, thanks

    Seems to me, this was Hypothetical Question.
    You created sales order,delivery,Billing for X material,
    But during delivery you picked Y instead of X.
    Normally to move the material from Factory to Gate--there will be different departments & no.of employees has been employed for this--But still there is a chance for manual mistake(very rare)
    As i understood this question can be handled in two ways:(Client dependent)
    1.Customer  not accepted this Y goods:
    we cannot do returns with parent sales order--because we dont have a transaction in SAP  (with Y material)-So you need to run all sales transactions with Y material followed by returns.
    2.Customer Accepted Y material:
    So here your actual inventory shows the variations.
    So you cancel the parent delivery(so this X will be back into your inventory---if proceeding document exists-need to be cancelled)Change the parent sales order with Y material(you can cancel the parent sales order,Can create new one--it depends on client)
    Again here the issue comes with Value variations:
    Always you can raise a credit/Debit memo to adjust the receivables.

  • Miro for return delivery mvt 122

    Hi experts
    I m doing miro ( credit memo )  for return delivery with mvt 122.
    in this case it is not bringing the quantity and amount of which i have made the return delivery.
    but it is bringing whole quantity and amount of PO.
    Please help how can i get the amount of return delivery in credit memo automatically.

    if you have already posted the invoice then dont go by the movement type 122
    the better way is to create an return Po with same vendor and material as before and in ME21N flag on the indicator return at item level.
    Then do the vendor return wrt to the return PO using trax MIGO the system will use the movement type 161 here post the document
    Then go to the MIRO trax and Post the credit memo.
    Award if usefull

  • ABGL Post Credit memo for asset

    In transaction ABGL (Credit Memo in Invoice Year), I wanted to issue credit memo for price difference in acquisition of asset.
    issue background:-
    asset bought without PO (F-90), last year 2010
    Now we want to post Credit memo for this asset.
    Error hit:
    Acquisition value negative in area 01.
    Message no. AA617
    What is this error message mean? How to resolve this?

    in OADB, our setting :-
    Acquisition value = +
    NBV = +
    Investment grants = 0
    Revaluation = 0
    Ordinary depreciat. = *
    Special Depr. = *
    Unplanned Depreciat. = *
    Transfer of reserves = -
    Interest = 0
    Revaluation ord.dep. = 0
    I follow your step, i change acquisition value field to "-", it prompt me this message:-
    Caution: generic values for real depreciation area (refer to long text)
    Message no. AC246
    You set up depreciation area 01 so that all types of acquisition values are allowed. However, this only makes sense for derived depreciation areas.
    System Response
    Warning message. The system allows the setting, but note that it can lead to undesired effects for real depreciation areas.
    Check the setting.
    I change theAcquisition value  + to -?

  • Credit note, credit memo and credit for returns

    Can anyone explain to me the difference of the followong scenarios?
    -Credit note
    -Credit memo
    -Credit for return
    tia - Pablito

    credit note and credit memo are same i.e when u pass the credit to the customer because of the excess amount u taken for example the high priced invoice, to balance it u create this type of document.
    credit for returns is exclusively when you take back ur damaged goods for example u return the value of the goods to customer thru this type of document.
    reward if helpful.

  • What is the difference between credit memo in invoice year and in next year

    I'm new here.I'm study SAP ERP.I don't know what is the difference between credit memo in invoice year and credit memo in next year (asset accounting).Can you show and give me an example, please!
    Thanks and best regards!
    Edited by: dinhtuan on Jun 28, 2010 3:10 PM

    Maybe have a look at the SAP Help for further information (http://help.sap.com) : e.g. 'Posting Credit Memos Integrated with Vendor'  or 'Posting a Credit Memo Offset Against a Clearing Account' 
    Transaction type 105 for credit memo on current acquisition made in the current year, posting key 75. Or transaction type 160 for credit memo on acquisitions from prior years. posting key 75.
    Note: determine if the asset was acquired in the current fiscal year or in a closed fiscal year (Display asset values).
    If the asset was acquired in a fiscal year that is now closed, correct the past depreciation using a write-up (in that case check out and refer to Posting Write-Ups).
    I hope this helps.
    Kind regards,

  • Difference between Credit memo and subsequent credit

    All SAP Gurus,
    In MIRO, what is the difference between Credit memo and subsequent credit?

    Difference between Credit memo and subsequent debits/credits
    Subsequent Debits/Credits are used in cases where the quantity is in the original invoice is to remain the same. For eg.
    PO  10 - $10
    Gr   10 - $10
    LIV 10 - $11 (Logistics Invoice Verification)
    The vendor invoice is more than that in the Purchase Order. In order to correct, the Vendor may send in another invoice for
    the Increased amount or a credit memo for the increased amount.
    If you approve of the price increase, post the subsequent invoice received as a Subsequent Debit/Credit Invoice.
    If it is a credit memo that has been received, then post the credit memo as Subsequent Debit/Credit.
    This would retain the quantity but reduce the amount.
    Subsequent Debit/Credit is for the case when the credit is not for the full amount eg. if the Vendor decided to credit
    only the $1 overcharged.
    Credit memo is for the credit of the full amount and value.

  • Credit memo for charges

    Can anyone tell me how to issue a credit memo for just the charges, say i created an order with freight charges and then invoiced, later realised we dont charge the customer for freight, how can i issue a credit for just the freight charges.
    Also if i invoiced the customer without charging him for freight or charged him less, how can i create a debit memo just for the freight  or the price difference?
    Any help is appreciated,

    I've tried using Invoice correction requests but i cant change the price of the debit item... only thing i can do is add a condition type to it.
    moreover if i add freight condition, it gives me negative value
    if i remove freight, it gives me a positive value
    Is'nt it supposed to be opposite?
    Also if i create a normal credit memo request and a credit memo its giving me a positive value and increasing Accounts receivable, where am i going wrong?
    Please help,

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